Firms aim for emerging world

BOSTON: Many brands targeting emerging markets have yet to optimise their strategies in these markets, the Boston Consulting Group (BCG) has said.

A new report from the consultancy included survey results indicating that just 13% of executives from multi-national companies feel their employer is "ready to win" in fast-growth economies.

This is despite the fact that 73% of the firms have prioritised these markets as venues for future business growth.

Bernd Waltermann, a senior partner at BCG, said: "Executives of global companies understand how important emerging markets are to their future in this two-speed world.

"But until now, they have had a hard time judging whether or not they were ready to win."

Figures cited by BCG in its report suggest that a total of 270m households from emerging markets will join the "consuming class" over the decade to 2020, meaning the size of this group will increase by around 40% during the 10-year period.

Moreover, annual GDP growth across the economies is anticipated to reach 6% over the next five years.

According to data from the IMF, advanced economies will record growth of just +1.4% this year, rising to +2.7% in 2017.

The new survey follows the release of a BCG report indicating that brand owners must become "adaptive" organisations capable of rapidly responding to changing economic and social trends.

According to the study, using social listening services, experimenting with NPD and being able to mobilise strategic changes in a targeted fashion will all be key characteristics of successful businesses in the future.

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